TAC-1: Term Alliance Contract

TAC-1: Term Alliance Contract
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TAC-1 is a versatile standard form Term Alliance Contract:

  • that can enable a client and its team to obtain better results from any term contract
  • that can help to integrate a team into an alliance
  • that can help to obtain improved value through building information modelling
  • that is designed for use in any sector and in any jurisdiction.

TAC-1 supports and integrates the provision of any type or scale of works and/or services and/or supplies. It is endorsed by the Construction Industry Council and by Constructing Excellence.

TAC-1 sets out:

  • a multi-party structure of “Alliance Members” including the “Client”, the “Provider”, an in-house or external “Alliance Manager” and any other Alliance Members (clauses 1 and 3 and Appendix 2)
  • why the term alliance is being created, stating agreed “Objectives, Success Measures, Targets and Incentives” (clause 2 and Schedule 1)
  • mobilisation and handover procedures and improved engagement with Stakeholders (clauses 1.11, 5.1 and 14.9)
  • a clear “Order Procedure” for simple or complex “Orders”, supported by “Template Order Documents”(clauses 4, 5 and 7, Schedule 4 and Appendix 3)
  • what the Alliance Members will do to seek “Improved Value”, working together through “Supply Chain Collaboration” and other agreed “Alliance Activities” in accordance with an agreed “Timetable”(clause 6 and Schedule 2)
  • how the Alliance Members will manage risks and avoid disputes using a shared “Risk Register”, “Core Group” governance, “Early Warning” and alternative dispute resolution (clauses 1, 9 and 15 and Schedule 3)
  • flexibility to include particular “Legal Requirements” and “Special Terms” for any sector in any jurisdiction (clause 13 and Schedule 6)